RETAIL LAUNDRY SERVICES MARKET REPORT OVERVIEW
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The global retail laundry services market size was USD 36290 million in 2021 and the market is projected to touch USD 56140 million by 2028, exhibiting a CAGR of 5.4% during the forecast period.
The retail laundry services market has experienced significant growth, driven by evolving lifestyles, busy schedules, and a heightened emphasis on convenience. This trend is particularly pronounced in urban areas, where many consumers opt to outsource laundry services to save time. The market is propelled by several drivers, including the increasing demand for time-saving solutions amidst busy lifestyles, urbanization leading to smaller living spaces without adequate laundry facilities, and a rise in disposable incomes prompting consumers to invest in convenience services like retail laundry.
The market is characterized by competition, with both local and larger players contributing to a fragmented landscape. Services differentiate themselves through specialization, offering premium or eco-friendly options. However, the industry faces challenges related to regulatory compliance, varying health and safety regulations across regions, and the essential need for cost management, particularly concerning resources like water and electricity. Moreover, the COVID-19 pandemic has likely impacted market dynamics, leading to changes in consumer behavior and heightened concerns about hygiene. Technology integration plays a crucial role, with many services adopting mobile apps and online platforms for seamless scheduling, payment, and order tracking, while some invest in advanced machines to enhance service quality and efficiency.
COVID-19 Impact: Market Growth Restrained by Pandemic due to Supply Chain Disruptions
The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.
The retail laundry services market may have faced challenges related to the disruption of supply chains, affecting the availability of laundry detergents, cleaning agents, and other necessary supplies. Adhering to health and safety protocols, including social distancing and personal protective equipment for staff, may have led to operational adjustments and increased costs for laundry service providers. Economic uncertainties and lockdowns have influenced consumer spending patterns. While some individuals may have reduced discretionary spending, others may prioritize outsourcing laundry for convenience and hygiene reasons. Laundry services catering to commercial clients, such as hotels and businesses, may have experienced fluctuations in demand due to lockdowns and travel restrictions affecting the hospitality and commercial sectors.
The pandemic has heightened awareness of hygiene practices, leading consumers to prioritize cleanliness in their daily lives, including laundry habits. With more people working from home and limiting outside exposure, there may have been an increase in demand for home-based laundry solutions, such as pick-up and delivery services. Some laundry services may have diversified their offerings, providing specialized services like sanitization or offering bundled packages to meet changing customer needs.
LATEST TRENDS
"Online Laundry Services in Retail Laundry to Drive Market Growth"
Online laundry services are gaining significant traction as busy individuals and families seek convenient solutions for their laundry needs. These services allow customers to schedule pickups and deliveries, track their laundry status, and receive notifications via mobile apps. The growing popularity of online laundry services is particularly evident in urban areas where space constraints limit the availability of in-home laundry facilities. Technology continues to play a pivotal role in shaping the retail laundry services market. Laundromats are adopting automated systems that streamline laundry processes, reducing labor costs and improving efficiency. Additionally, mobile apps are being leveraged to provide real-time information, track laundry progress, and offer personalized service options. These technological advancements are enhancing the overall customer experience and contributing to operational efficiency.
RETAIL LAUNDRY SERVICES MARKET SEGMENTATION
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- By Type
Based on type the global market can be categorized into dry cleaning, washing.
Dry cleaning uses solvents to clean delicate fabrics without water, while washing involves the use of water and detergent to clean a wide range of garments.
- By Service
Based on service the global market can be categorized into drop-off laundry, self-service laundry, pickup laundry service.
Drop-off laundry offers convenience by allowing customers to leave their clothes for professional cleaning, self-service laundry enables individuals to wash and dry their own clothes on-site, and pickup laundry services provide the convenience of having garments collected and returned after being professionally cleaned.
DRIVING FACTORS
"Increasing Urbanization and Busy Lifestyles to Boost the Market"
One of the key driving factors in the global retail laundry services market growth is the increasing urbanization and busy lifestyles in urban areas. The trend of urbanization has resulted in smaller living spaces and, in some cases, a lack of laundry facilities, driving the demand for external laundry services in urban areas. As individuals lead increasingly hectic lives, there is a growing demand for time-saving services, prompting many to opt for outsourced laundry solutions. Rising disposable incomes enable consumers to allocate more budget towards convenience services, including retail laundry, as they seek ways to simplify their lives. Evolving consumer preferences and behaviors, influenced by factors like convenience, efficiency, and lifestyle changes, contribute to the demand for retail laundry services.
"Technological Integration and Hygiene Status to Expand the Market"
Another driving factor in the global retail laundry service market is the technological integration and hygiene status offered by these products. The adoption of technology, such as mobile apps and online platforms, enhances the convenience and accessibility of laundry services, attracting a tech-savvy customer base. Especially emphasized during the COVID-19 pandemic, a heightened focus on hygiene and cleanliness has driven individuals to seek professional laundry services for thorough and sanitized cleaning of their garments. The growing awareness of environmental concerns has led some laundry services to adopt eco-friendly practices, attracting environmentally conscious consumers. The competitive landscape in the market encourages services to differentiate themselves, whether by offering premium services or specializing in specific niches, to cater to diverse consumer preferences.
RESTRAINING FACTOR
"Economic Downturns and Home Laundry Solutions to Potentially Impede Market Growth"
One of the key restraining factors in the global retail laundry services market is the economic downturns and home laundry solutions of these products. During economic downturns, consumers may cut back on discretionary spending, impacting the demand for outsourced laundry services as individuals seek to save money. The availability and popularity of home-based laundry solutions, such as personal washing machines and DIY cleaning, may reduce the reliance on external laundry services. The demand for laundry services may vary seasonally, with fluctuations influenced by factors such as weather conditions or holidays, leading to inconsistent revenue streams for providers. Managing operational costs, including expenses related to water, electricity, and detergent, is critical for the profitability of laundry services, and any fluctuations in these costs can impact the business.
RETAIL LAUNDRY SERVICES MARKET REGIONAL INSIGHTS
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"North America to Dominate the Market due to Presence of a Large Consumer Base"
North America has emerged as the most dominant region in the global retail laundry services market share due to several factors. North America has a high rate of urbanization, particularly in major cities. Urban areas are characterized by busy lifestyles, limited living space, and a higher propensity for individuals to seek convenient solutions like retail laundry services. Generally, North America has a relatively high level of disposable income among its population. This financial capacity enables consumers to spend on convenience services, such as outsourced laundry, especially in urban centers. Cultural shifts, including a willingness to pay for convenience and time-saving services, have contributed to the popularity of retail laundry services in this region. The region has been quick to adopt technological advancements, and the integration of technology in laundry services, such as mobile apps for scheduling and payment, can enhance the convenience factor.
KEY INDUSTRY PLAYERS
"Key Industry Players Shaping the Market through Innovation and Market Expansion"
The retail laundry services market is notably shaped by key industry players that exert substantial influence on market dynamics and consumer choices. These major players boast expansive retail networks and online platforms, offering consumers convenient access to a diverse range of laundry services. Their robust global presence and recognized brands foster heightened consumer trust and loyalty, stimulating the adoption of their services. Furthermore, these industry leaders consistently channel investments into research and development, introducing innovative solutions in service offerings, technologies, and eco-friendly practices, aligning with the evolving needs and preferences of consumers. The collaborative endeavors of these major players play a pivotal role in shaping the competitive landscape and determining the future trajectory of the retail laundry services market.
List of Market Players Profiled
- Rinse, Inc. (U.S.)
- Tide Cleaners (U.S.)
- Hakuyosha Japan (Japan)
- Comet Cleaners (U.S.)
- ZIPS Franchising LLC (U.S.)
- Cleantopia (U.S.)
- E&R Laundry and Dry Cleaners (U.S.)
INDUSTRIAL DEVELOPMENT
October 2023: Rinse, Inc. Introduces New Automated Laundry System: Rinse, Inc., a leading provider of self-service laundromats, has introduced a new automated laundry system that uses advanced technology to improve efficiency and reduce labor costs. The new system is designed to handle a high volume of laundry with minimal human intervention.
REPORT COVERAGE
The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.
The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.
REPORT COVERAGE | DETAILS |
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Market Size Value In |
US$ 36290 Million in 2021 |
Market Size Value By |
US$ 56140 Million by 2028 |
Growth Rate |
CAGR of 5.4% from 2021 to 2028 |
Forecast Period |
2022-2028 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Type and Application |
Frequently Asked Questions
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What value is the retail laundry services market expected to touch by 2028?
The global retail laundry services market is expected to reach USD 56140 million by 2028.
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What CAGR is the retail laundry services market expected to exhibit by 2028?
The retail laundry services market is expected to exhibit a CAGR of 5.4% by 2028.
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Which are the driving factors of the retail laundry services market?
Increasing urbanization and busy lifestyles, and technological integration and hygiene status are some of the driving factors of the retail laundry services market.
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What are the key retail laundry services market segments?
The key market segmentation that you should be aware of, which include, Based on type the retail laundry services market is classified as dry cleaning, washing. Based on service the retail laundry services market is classified as drop-off laundry, self-service laundry, pickup laundry service.